New information from the Incentives Office

ILLINOIS will soon have a new production incentive, when the Governor signs legislation that increases the Illinois transferable tax credit to 30%. Given that a major film can be crewed locally, sound stages are available, there is a processing lab in Chicago, and virtually all production equipment and supplies can be found in the state, this will make Illinois a very attractive location.  Details to follow.

MISSOURI has $3.7 remaining for 2008 of their 35% transferable tax credit.  Applications must be approved and a production office (a local address and phone number) opened by December 31, 2008, but production need not commence until 2009.

OKLAHOMA has $4.7 million remaining for this fiscal year.

PENNSYLVANIA reports that, despite production activity in both the Pittsburgh and Philadelphia areas, funds are still available for their 25% transferable tax credit.  Interested producers should contact the film commission.

FLORIDA has now allocated all funds for the current fiscal year; new funds will be available July 1, 2009.

Note that there are no yearly caps in Connecticut, Georgia, Hawaii, Iowa, Louisiana, Massachusetts, Michigan, North Carolina, New Mexico or Wisconsin.

Two rumors were floating around the recently-wrapped American Film Market:

1.     New York State is out of money and the program will be shut down.

2.     Michigan is out of money, OR a ceiling of $50 million is about to be put in place.

There is no basis for these rumors.  New York still has funds available, and Michigan is not out of money.  However, New York city is feeling the pinch of the economy, and their program has a $30M annual cap.

Many sources of production funding are gone/temporarily out of funds or stopped lending for single picture finance, but we are working with a number of banks, funds and private lenders with money available for gap and incentives financing.  If you’d like an introduction, please CLICK HERE to fill out our form.

Where should you shoot? Download the incentives guide for roi!

INCENTIVES UPDATE OCTOBER 2008

ARIZONA still has funds available for production in 2008 (anything not used from the 2008 allocation carries over to 2009).  Applications are available at www.azcommerce.com/film.  Applications for the funds allocated for 2009 will be accepted starting in January.

FLORIDA, despite the reduction in their allocation for the current fiscal year,  still has funds available for productions that start principal photography after January 1, 2009.  Anyone interested should file an application as soon as possible.  Applications are online at www.filminflorida.com.

GEORGIA has been generating substantial production interest in its new program which offers a tax credit of up to 30%.  However, the credits are subject to recapture, which might present a problem for some potential buyers.

MASSACHUSETTS reports that 10 films are currently in prep or pre-production, compared with 8 at this time last year.  Plymouth Rock Studios has purchased a golf course in Plymouth as the site of their proposed sound stage development.  A town meeting to vote on the project is expected this month. MA has no caps on talent or per production.

MICHIGAN sends a reminder that productions must wrap, complete their third-party audit and receive a post-production certificate from the state prior to December 31, 2008 for the rebate to be received in 2009 (after filing the Michigan Business Tax return.)  Otherwise, the rebate will not be due until 2010.  There is currently no legislation in progress to put a yearly cap on the rebates.

MISSOURI has $4.4 million still remaining of their 35% tax credit allocation, for expenditures in the state.  Out-of-state crew earns a 30% credit. A film company may only receive this credit for one film per year.  There is no per picture maximum, provided that funds remain.

SOUTH CAROLINA has exhausted wage rebate funds for the fiscal year ending June 30, 2009.  However, ample funds for the 30% supplier rebate remain.  For further details contact the commissioner, Jeff Monks: jmonks@scprt.com

WEST VIRGINIA’s 27% to 31% transferable tax credit has been hampered by a recapture provision, whereby the good-faith buyer of credits might lose their value should the state later determine that the production was not entitled to the credits.  A temporary solution has been proposed so that once the production company submits and receives approval for its Agreed Upon Procedures Audit from the state, a letter will be issued removing the possibility of recapture.  This should be a boon to production in WV, the only state that offers River On Demand ™, which tailors the flow of the Gauley River to the needs of the production.  Our friends at Tax Credits LLC helped develop this proposal.

WISCONSIN has enjoyed its best production year ever, with six features completed, in production or in prep, plus TV episodes from Discovery, HGTV and MTV shooting this month. A warehouse in Green Bay has been converted into a 20,000 sq. foot sound stage, and the RDI Stages complex opens in Milwaukee this month.  The incentive includes a 25% refundable credit and (for Wisconsin residents) and a 25% investment tax credit.  The director of Film Wisconsin (which acts as the state film commission) will participate in our October 24th symposium.

U.S. SECTION 181 The Federal Bail-out Plan has extended the sunset of this program for another year, until December 31,2009.

Aaron Syrett, the North Carolina commissioner, has been added to our Commissioners Panel, which also includes the commissioners from Iowa (50% tax credit), Mississippi (20-25% rebate), Wisconsin (25% tax credit) and Georgia (20-30% tax credit).  Other panels include production heads from 2929 Entertainment, Millennium Films, 20th Century Fox and Crystal Sky plus producers, lenders, bankers, finance funds, brokers and more.  For information or to sign up, CLICK HERE.

If you need information about cash-flowing (financing) rebates or brokering production tax credits, please CLICK HERE to fill out our form, and we will suggest possibilities.  We will be pleased to introduce you to any appropriate banks, mezzanine lenders or tax credit brokers.

For an electronic copy of our Summer Guide to U.S. Production Incentives, please CLICK HERE.  The Fall Guide will be distributed at our October 24 Symposium, and available online thereafter.

Incentives Office Alert

Attempts are now underway in the Michigan legislature to limit the amount available per year for production rebates.  Currently there is no limit or cap, but last week an amendment bill which would put a $50 million per year cap on the rebate was passed by a Senate committee.  The House is now out of session until after the election; legislation not approved by both the Senate and House by December 31 may not be carried over to 2009, so passage is unlikely this year.  But it is probable that an amendment will be introduced again next year.

Meanwhile, the Michigan Treasury Department has ruled that mileage reimbursements, meal allowances and per diems will not qualify for the rebate unless they are subject to Michigan taxes.

South Carolina is considering legislation that would reinstate the 20% feature film incentive for out-of-state crew; currently out-of-state crew are capped at 10% of the first $35,000 in wages.  Qualified television projects earn 20% for out-of-state crew up to $1M. Both qualified film and tv projects can earn 20% for all cast and local hires up to $1M, and 30% for SC goods and services

The Incentives Office is sponsoring a major Production Incentives Symposium the morning of Friday, October 24, in Beverly Hills, CA.  For information, CLICK HERE.

If you need information about cash-flowing (financing) rebates or brokering production tax credits, please CLICK HERE to fill out our form, and we will suggest possibilities.  We will be pleased to introduce you to any appropriate banks, mezzanine lenders or tax credit brokers.

For an electronic copy of our Spring Guide to U.S. Production Incentives, please CLICK HERE.

Filmmaking Central Episode 26 2005

Show me the money! The soft money that is! States, countries, kingdoms all offer the filmmaker incentives to shoot there. Lets talk about this.